Skip to main content

tv   Trending Business  Bloomberg  October 1, 2015 10:00pm-11:01pm EDT

10:00 pm
-- scandal. they will stay on payroll. fromy china picks up a tip singapore as a tries to shake up its loaded state enterprises system. what advice the city can offer. let us know what you think of today's top stories by following me on twitter. hong kong equities appeared to be playing catch-up. still remains closed today, juliet is watching action for us in the market. >> they certainly are. been defensive. as you mention, and big pickup coming through. that has lifted the overall rate. at the moment, the regional benchmark indexes up by one third of 1%. casinos are still a little bit
10:01 pm
mixed. we had a solid start on the open havete that slump that we seen in macau. at the moment, we are seeing mixed movement. certainly the fact that hong kong was closed while the rest of the region was in a buying mode is resulting in gains today. base metals really impacting overall today. retail sales impressive, coming .n online and upfront estimates new zealand has not had a good week but some last-minute buying brought it up by one quarter of 1%. don't have any trade in china
10:02 pm
today, india is also closed. yvonne: thank you. let's talk about casinos because china is celebrating golden week. that is typically when visitor arrivals spike in macau. let's hope that is true because it has been a rough ride for the house. it is also typically one a lot of people leave with empty pockets he comes the house would always win. that said, it has not been good. drop in gambling in september. start ofght at the golden week so casinos are hoping that chinese taurus feel the casinos because it has not been as did the is here and analysts are looking for any sign that a recovery could be
10:03 pm
forthcoming. have a look at this. is ai have for you here comparison between september. it gives you an apples to apples comparison of last month compared to september over the last four years. we are certainly nowhere near the peak of 2013. it softened into 2014, then things went off a cliff. as you would expect, and this is not a surprise, casino stocks are getting absolutely hammered. most analysts are still reluctant to call it the bottom for the industry. cow, butto be a cash it is still very soft. it has pushed some of the junket operators to warn that if the weakness continues, it may have to shut down.
10:04 pm
i believe we are seeing a bit of a recovery right now. ands broaden the view now look at how the drop in gambling creates damage on the economy. as you can see, this is a five-year look of the macau economy. at one point, it was expanding at a rate of 30%. have a look at the latest data. 26% drop in the second quarter. the pain does continue and it is being felt outside the casinos. yvonne: thank you. toshiba says it has found 30 more executives involved in an accounting scandal that they will not be fired. the issue has seen the fall of three company presidents and white that more than a billion dollars of profit. we are live in tokyo right now with the story. pavel, what is going to happen to japan ink? that is a good question.
10:05 pm
toshiba is not the right person to ask. they did not say why the 30 will not step down, only that they will be punished. in addition, the board has been reshuffled. two of the former directors are still on the payroll as advisors. the chairman has served over this seven year. where profits are inflated as much as $1.3 billion. earlier, prime minister shinzo york.s in new two days later, one of the pillars of japan inc. is sending a signal that it is business as usual. yvonne: thank you. is take a look at some other stories we are watching. here is sherry with the roundup. shery: samsung may be the latest
10:06 pm
company to use so fault -- -- devices. the paper likens a discrepancy to the vw admissions scandal in the united states. the european commission says they will investigate any allegations of cheating and will tighten energy efficiency regulations. in response, samsung denied using any such device saying it is a standard out-of-the-box feature used it to save energy, not a test cheap. they say the feature is called motion lighting, which reduces power consumption by reducing brightness. samsung says motion lighting only activates as a default setting, working both in the
10:07 pm
laboratory and at home, delivering energy savings. in the u.s., auto sales enjoyed their biggest jump in more than a decade last month. gm, ford, and nissan the estimates as low interest supported american's love of pickups and suvs. auto data says at the end he was telling for seasonal trends is 18.2 million vehicles. this is a rare bright spot in the country's manufacturing industry and stands in contrast to other economies. it raised its four-year vehicle sales forecast by 100,000 to 17.2 million. its estimate moved to match the record set in 2000. even bmw, still reeling from a pollution scandal, managed a sales gain, defining analyst predictions of a plunge for the
10:08 pm
brand. combined with audi, vw sales rose more than 6%. says it plans to ban the sales of streaming devices from apple and google from the end of the month that are not easily compatible with its videos service. the retailer sent an e-mail to its market based sellers that it will stop selling the apple tv because thoset devices do not interact well with prime video. existing inventory will be removed. will not beystation affected. amazon's a will likely hurt google more than apple which has its own direct stores. the move shows how amazon is willing to sacrifice a sales of popular brands to bolster its own services. amazon has invested heavily in online content, including producing its own shows, such as
10:09 pm
the award winning transgender comedy, transparent. those of the stories topping the headlines today. yvonne: thank you. ,ooking ahead, don't overreact we cover the recent volatility in china. probleming up, the arising in south korea, we will discuss hsbc after the break. ♪ yvonne: south korea's central
10:10 pm
10:11 pm
bank has a fight on its hands. the latest prices slipped further away from its target. usc asia economist joins now. you say inflation numbers are not too important for korea?
10:12 pm
in terms of data points, we had production and exports. if you look into the third year, an inflationing target. there has been increasing talks that they will lower the target next year. they have to set a target for a three-year period. basically, if they come to the realization that potential growth is weaker than what the government expected, which is about 3.6%, they can lower the target and expect lower growth. yvonne: when you look at the rest of world, like japan, still 0% inflation. should we be worried about deflation right now? should we even say that word? guest: i don't think we should be worried about it, edition is
10:13 pm
just the realization that there will be lower growth. this is a high income country. is just that policymakers have to take expectations into consideration. yvonne: what do you think -- how much more lower should ago? guest: probably not too much lower. at the end of the day, they expect growth to be upwards of 3%. it is going to depend on their estimates. probably not too much lower. they don't want to set too low of a target, especially if there is going to be recovery. talk about these export figures because it dragged down the most since 2009. it was better than expected but still, much in contraction. inventories will be the big thing that could see further downward pressure. guest: exactly. contraction, it could have been better than the 15% we
10:14 pm
saw in august. if you look at industrial production, that was better than expected. closer,look at the data a growth in september was less than previous months. on year to year terms, it is actually quite high. have expended for four consecutive quarters a quite a high pace. that introduces some worries that potentially, in the coming months, production might not be so good. is ae: of course, there weak global demand. china is a factor. domestically, we are seeing consumption being quite a factor . why do you think consumption is still so low? why cannot we recover? guest: part of it is that korea is dependent on exports. weekend, koreans had cut prices and reduced --
10:15 pm
that feeds into employment. if you look at the pmi, the employment subcomponent has been in contraction for a few months. that is leading to stagnant wage growth. earlier in the year, we had a burst in june. that is why later, growth was quite small. after that, it is getting a bit better, consumer sentiment increased but not to the level pre-merge. can is why by the time we -- that is why we don't think we can reach the growth forecasts. yvonne: so you are expecting a cut? guest: we don't expect a cut in this month's meeting. the data was a bit better than expected. industrial production expanded. you look at the minutes of the september meeting, there was a bit on whether cutbacks will help the economy, or will we have to revise growth forecasts. there is a little bit of
10:16 pm
optimism. we don't expect any cuts this month. i think, going forward, they will come to the realization that growth is not that strong a we will not reach the forecast so if they downgrade the forecast this month, that could imply that they will be a rate cut. yvonne: there is that issue of household debt because if you do -- this would just spur more borrowing and swell the problem? yvonne: -- guest: exactly. as interest rates come down, household debt increases. however, there were some measures over the summer that introduced a package to help switch mortgage debt from floating rate to fixed. it is making the economy a bit less vulnerable and improving the distribution of household debt. i think that might placate some of the concerns but at the end thate day, it is something
10:17 pm
can prevent them from cutting rates but if the economy is slowing down, then i think pressure will be on them to actually cut rates. lending rates to businesses as well. that is where you need investment, investment at the economy for future years. yvonne: not quite as dire as some suggest you're thank you for joining us. us and stories making headlines around the world. 13 people reported to have been killed at a shooting at a community college in oregon. police and say a gunman opened fire on the campus of umpqua community college, 180 miles south of portland. police say the gunman is dead but has not clarified whether he was shot by officers or killed himself. president obama offered his condolences and lamented his country's inability to stop repeated mass shootings. i answered ama:
10:18 pm
question earlier by saying, the united states of america is the one advanced nation on earth in which we do not have sufficient, common sense gun safety laws, even in the face of repeated mass killings. , there was at day mass shooting at a movie theater in lafayette, louisiana. yvonne: russia has carried out more airstrikes in syria saying it will defend president assad. questions ofaise involvement of russian and american warplanes, which are carrying -- sharing work -- sharing airspace while carrying out differing campaigns. the strikes have not been in areas controlled by isis. afghanistan say forces have taken a northern city which fell to the taliban three days ago. that claim was denied by stillnts who say they
10:19 pm
control the city. the fighting is a major test for the afghani president as he tries to prevent it taliban insurgency from spreading as the u.s. withdraws troops. he completed his first year in office this week. coming up, learning from singapore. what the city can tell the state when it comes to reform in china. trending business. ♪
10:20 pm
10:21 pm
10:22 pm
yvonne: this is trending business. welcome back. the slowdown in china has put the government under pressure to state owneded enterprises in the idea has been on the agenda for years. it has met little success. beijing is looking abroad for inspiration. soda singapore have the answer? singapore has a model that may work. singapore's state investment company is a major shareholder of most government linked company. we are talking about the likes of singapore airlines, olam, these are among those companies. shares and 10 at of 30
10:23 pm
companies on the index. it is purely a shareholder, it has nothing to do with how these companies are run on a daily basis, different than what is happening in china. we know that government intervention -- the success of temasek has to do with several things. not interference, professional management, competition. these are key. within an industry, they compete with each other. its value has surged to a record 200 billion u.s. dollars. a crew 300% in the last 20 years and if you look at returns, averaging 15%. it has had a great deal of success. thatis interesting is china has been looking to singapore for solutions. -- the 1978, chinese
10:24 pm
chinese visited singapore to see how their economy worked. yes, the lion city may have some things that were -- that could work for china. whene: back in the 1990's they sold off state owned enterprises but ended up in a handsome small groups of oligarchs that will the model work for china? haslinda: at a glance, there has been mixed results. singapore airlines has been able to build themselves as a well run, big brand. , a different story. a semiconductor company that has been saddled with some growth toblems, which prompted modi downgrade the companies. compare them to other state owned enterprises elsewhere in the world. not too bad.
10:25 pm
have done better in terms of market value. china will have to decide if it will work for them. yvonne: thank you. we are gearing up for the weekend and rugby. here is the latest news. fiji loses, and france scores in a 48-18 victory over canada. later, the defending champions new zealand take on georgia. we will see if the all-black will be too powerful george r -- too powerful for georgia. to thes a step closer
10:26 pm
quarterfinals. way butldwin paved the they may fail to pick up a bonus point. more after the england-australia game on saturday, a game that england must win to stay in their own competition. coming up, everybody is looking at when the fed will jump. this evening's job report will offer the latest clue. we will have a special report from washington after this break. ♪ yvonne: top stories trending
10:27 pm
10:28 pm
10:29 pm
this hour, the market is struggling to gain traction as asian stocks and with a fault here he japanese and australian shares are dragging the region lower. employers probably added about 200 thousand workers in september according to a survey of economists. oil is surging despite lackluster data from china and the u.s. that could mean a sustained rebound is on the horizon. opec is pumping record amounts.
10:30 pm
china's imports have slowed and u.s. stockpiles remain high. oil is holding steady, around $45 per barrel. that means -- easy credit is fueling a surgeon u.s. auto sales. posted record sales thanks to its a road model. gm and ford also beat estimates with double-digit increases. shares of nissan, to yada, and honda are falling in tokyo. a lot of data for did investors for to digest. how are things looking right now as japan has until lunch? up dayainly a big catch because the hong kong market was closed yesterday when the rest of the region really rallied on the back of a strong game coming through on global equities on
10:31 pm
wednesday. perhaps there were a lot of buy orders. -- a 2.3% gain on the hang seng index. quite a bit of coffee trade ahead of that job number coming through tonight. japan has entered into the lunch break just slightly higher. reverting some of those earlier losses in the session. still some weakness coming through in australia. retail sales are up 4.1%. we saw base levels fall quite significantly in london, weighing on mining stocks. asewhere in the region, little bit of a pickup in the rate -- a little bit of a pickup in korea and taiwan. you mentioned u.s. auto sales, really being a very strong. we saw some initial weakness coming through.
10:32 pm
these of the lunchtime prices. we can see the air all in the black. mitsubishi motors is having a good pickup their. suzuki and on do still being sold off. up another 1% today. we have been watching these casinos. have a look at this. galaxy entertainment up by more than 7%. wynn also up. rising.ina also we have had reports of another month of false coming through in gaming in macau. perhaps there could be some supporting measures from china. whether or not they will give a boost to casinos or there were just a lot of buying and selling, certainly the casinos lifting the hong kong market today. yvonne: that's right. that report is saying they might be boosting the taurus and sector and we will check on that
10:33 pm
later. let's check on this evening's u.s. jobs report which gives us another indication of the strength of the economy. and possibly a hint of what the fed will decide at the end of the month. we have more from washington. all eyes will be on the u.s. labor department on friday as wall street takes the latest piece of data likely to have an effect on the federal reserve. two weeks after policymakers decided to leave interest rates near zero, the government will release in september job report data. it may were -- and may show payroll climbed by 200,000 according to the median forecast. likelymployment rate is to hold at 5.1%. that is the lowest since april, 2008. the august report contains mixed data, including a gain of one hundred 73,000 jobs which misses expectations. a drop in the unemployment rate places it within the offense
10:34 pm
definition of employment. policymakers declined to raise global market headwind, even in the face of the improved labor market. janet yellen has maintained her stance that it increases likely in 2015. there is currently a 42% probability they will move by december 15. that is according to future data compiled by live. it is sure to play -- compiled by bloomberg. if the decision is -- friday's job report. back to you. out otherecking stories, amazon says they planted and the sale of streaming devices from apple and google from the end of the month . they say that products are incompatible with its own streaming service, prime video. less than 20%ys of amazon customers are prime members. and is on fire is its best selling device.
10:35 pm
a patent trial over hybrid engines and now they must pay a baltimore company $29 million. the jury in maryland rejected claims that the patent was hyalid and here and i -- -- they willt was appeal any adverse findings. honda has announced a recall of 150,000 cars in the u.s.. and fit -- they need updated software. they say some cars may be vulnerable to a hydraulic pressure which may put the pulley shaft under stress. honda says no injuries have been reported related to the issue. let's talk more about the slip and commodity prices. it has hit produces around the ceo says hee socgen
10:36 pm
is not worried about the impact of revenue. we spoke in london. i think there is an over reaction to something which is not a surprise. having traveled to china often, we could have seen a slowdown. at the same time, i think there is an over reaction when people think that really, china could callous.o a there is the capacity, we know about the need to change toward a more consumer driven model and i think china can address that. might see a lower growth than expected. maybe 5%-6%. but i don't think about -- reporter: we had a glencore moment, that blowup in the equity market that had a global impact in terms of our view of commodities.
10:37 pm
have we had a moment in terms of our perception of the commodity market? guest: i don't think so. we will see the same thing in the commodity sector. again, i think it is maybe longer-term. how long will it last? decrease orict the the increase? especially the scenario we have in mind where the u.s. and europe should do pretty well. add think it is more a three-year thing. i don't think there is view in: there is this europe at the moment, the financial aviation of banks, big businesses and commodity businesses -- are you concerned it from a banking perspective that the commodity route will begin to have a kind of impact in terms of the numbers for the banks guest:? guest:i do think so either. two things. as bankers, we have to think 10 years ahead here we have to
10:38 pm
build this is as we can provide added value. the energy sector, the commodity sector, which is important, will remain in the -- wilbur made in the 10 year and -- will remain in the 10 year an important sector. the nature, perhaps, recipe for success going forward in this volatile world where at the end of the day crises can happen, predicting the situation in russia -- two years ago? .he concentration of risk the management of the concentration of risk. he knew to a balance for your businesses, you need to avoid an oversaturation in a sector. yvonne: that was the ceo of socgen. let's head back to the auto industry. u.s. auto sales enjoy their biggest jump in more than a decade last month with gm, ford,
10:39 pm
and nissan beating estimates. why such a hot streak? reporter: there are a few things going on. in the last couple months, we saw incentives go up. the same time, gas prices are pushing crossover sales. they outperformed sedan sales by a lot. in are seeing 30% growth suvs for various companies, said in sales were not too -- sedan sales were still in the single digits. gas prices are coming down. that is what is helping suv sales. you have a combination of the labor day holiday with incentives, gas prices are low, pushing a lot of suv sales. what i think was a surprise was volkswagen. but you shocked by that? reporter: yes and no.
10:40 pm
they grew about 8%. -- it is not surprising. there is that diesel omission -- diesel emission scandal. october will be indicative of what is going to happen with volkswagen. there has been some stop sales in the u.s. with diesel vehicles. you will probably see a slower growth rate for volkswagen next month. yvonne: we still have to wait for those figures. how does the asian automakers do in the u.s.? reporter: the three-day japanese donehe korean, they have very well. again, it is mostly suv sales. if you look at their agents u.s.,-- relative to the it is not going to be as good, especially if you look at china.
10:41 pm
china cut its a sales tax to autos to 5% earlier this week. we are probably going to still see slower growth next month or so, so. yvonne: thank you. the world'sne of biggest polluters has pledged to go green, a special report of that when we return. ♪ yvonne: checking headlines
10:42 pm
10:43 pm
stories, the u.s. human rights council has approved a resolution on the civil war in sri lanka. it calls on colombo to allow the identification and punishment of those for alleged war crimes by government forces and 10 note tiger militants. the war ended -- tamil tigers.
10:44 pm
at least 80,000 people died in 26 years of fighting. iran has double the number of pilgrims it says died in the mecca.e near tehran put the number at 464. saudi arabia says 769 people died during the hajj. the numbers provided all suggest the true casualty figure may be above 1000. iran has warned of harsh measures if they failed to repatriate the bodies of the dead. medical supplies are low because of an official economic blockade imposed by india. more than 1000 trucks are stuck at the border of nepal with a shipments of essential goods. many nepalese say india is retaliating against their government. india denies it is blocking
10:45 pm
supplies from entering nepal. held out until the last minute before submitting a proposal to tackle greenhouse gases ahead of the paris climate talks. new delhi did not promise any cuts to emissions, only to slow growth. we are live in tokyo. thank you for joining us. tell us more about india's commitment and how they compare to other countries. reporter: good morning. as you mentioned, india did not promise to cut its absolute emissions. what it did do was cut its emissions intensity. what that means is that the indian government is recognizing that in order to achieve the economic growth that the government is hoping for, that the emissions will still keep growing. if you look at china, china has said that it they expect emissions to peak around 2030.
10:46 pm
there is a real difference in terms of china saying a peek, and india saying no peak. what it is important to look at is, the fact that india itself is home to the world's dirtiest city in terms of new delhi having the world's dirtiest air, it is home to 13 of the 20 most polluted cities. there is a big stake here for india. is this agreement going to kickstart investment in renewables? where's the money going to come from to build a clean energy capacity that india is talking about? will, but moreit than anything else, this agreement really is an india isgment that already making those moves. it is starting to invest, it is starting to build solar capacity quite significantly. the goals are quite ambitious,
10:47 pm
175 gigawatts of capacity. that theyment says expect by 2032 have about 40% of its primary energy coming from nonfossil fuel sources. that in itself indicates a significant push for renewables. the question is where does the funding come from for that because india is saying it has all the these competing priorities and commitments. of the commitments is, we need extra help, we money from outside sources, we need money from the asian development bank, witty money from some of the biggest polluters are some of the biggest economies in the world, so it is saying, yes, it will make commitments, but we have to get money from elsewhere. if this commitment really going to be reaching this global agreement on climate change in december in paris? as you indicated in
10:48 pm
the introduction, it is significant in the sense that india was the last major economy to make commitments. what it means is that india is part of the discussion. that is a really good thing. -- india hast does always said that these competing elements -- it has -- it acknowledges that it needs to grow. it acknowledges that that means that a missions are going to rise but again, there is a lot at stake for india in terms of its own pollution and a lot of stake -- a lot at stake in terms of a global environment agreement that will hopefully hold down temperature rises. yvonne: thanks so much. coming up next, backing businesses, what startups can do to make searching for funding easier. ♪
10:49 pm
10:50 pm
10:51 pm
j.p. morgan chase is set to pay one third of the default swaps settlement. part ofn't banks are video to resolve accusations that they conspired to limit competition. people familiar with the deal say jpmorgan will pay $595 billion. that would make it easier for electronic traders to enter the market. samsung tvs in europe appear to use less energy during official testing and they do during the real world use. samsung denies using any such device saying, it is a standard out-of-the-box feature used it to say the energy, not a test
10:52 pm
cheat. mark zuckerberg's privacy campaign is one step closer to trial. a judge denied his request that he did not keep his word in a land deal. a neighboring property says he reneged on a promise as part of their agreement. do you have an idea for a tech startup? finding funding is another matter. we speak with the -- ambition helps. grow whichelp them means, raise capital, help them think strategically, do acquisitions, allow further fundraising, and help them exit. after we have identified the
10:53 pm
sectors, we do a lot of digging into the key players and they're all doing slightly different things, that meeting as many of those as you can in researching as much as you can in trying to work out who is going to have the best chance of success. [indiscernible] >> i think now he has the data harvested in his mind, giving him the potential to expand more aggressively into certain geographies which is what we always like, ambition. >> what are some of the metrics you can share in terms of number
10:54 pm
of meals being served, households? >> we delivered over 4 million meals per month. it is much higher by now. last numbers that we published. >> huge. >> he was one of those meetings where you kick yourself a little bit, because when you look at his metrics, it is growing at an unbelievable rate. they clearly invested a lot in the logistics in a platform that allows them that foundation to grow at that rate. of average return that i can expect -- it generally a lower , so returns would vary.
10:55 pm
>> the fact that a ramped up to 300 million in volume. >> you have a lot of these meetings any meet a lot of entrepreneurs and every once in a while, you meet one that you are totally blown away by so that the hairs on the back of your neck stand up. as those sorts of guys you want that, you do anything you can do try to help those guys and work alongside them. the team is crucial. none of these businesses are going to succeed if they have a third-rate management team. yvonne: that is it for us a trending business. stay tuned for asia edge. including that accounting scandal at toshiba. fired.utives will be a look at the state of japan inc.
10:56 pm
this is bloomberg television, asia edge is next. have a great friday. ♪
10:57 pm
10:58 pm
10:59 pm
11:00 pm
mark: i'm mark halperin. john: i'm john heilemann. mark: "with all due respect" to the house of representatives, anybody seen kevin mccarthy? ♪ mark: on the show tonight, jeb, mark: on the show tonight, jeb, marco, and putin. but first, lots of lots of hillary and a touch of bernie. starting with a surprising announcement that an old socialist from vermont is giving hillary clinton a run for her money when it comes to money, as in fundraising. bernie sanders announced that he raised $26 million over the last three months, most of it from small donations. hillary clinton's campaign annod

6 Views

info Stream Only

Uploaded by TV Archive on